MAY 2021
MARK MONROE INSIGHTS ON PERSONAL LINES MARKET SHARE
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M AY 2021
CONTENTS FEATURED 8
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Q&A WITH MARK MONROE IA&B Government Relations Committee and Former IA&B of Pennsylvania Chairman Mark Monroe shares his insight on independent agents’ personal lines market share and what drives his support of IA&B’s political advocacy. TOP TIPS FOR FINDING & KEEPING TALENT IA&B HR Consultant Karen DiGioia addresses the growing challenges associated with finding and keeping agency staff.
MONTHLY JOIN US ON SOCIAL MEDIA: Facebook.com/IABforME LinkedIn.com/company/IA_and_B Twitter.com/IA_and_B YouTube.com IA&B is the premier resource and champion for independent insurance agents in Pennsylvania, Maryland, and Delaware. Periodical postage paid at Mechanicsburg, PA and at additional mailing offices. Postmaster: Send address changes to Insurance Agents & Brokers, 5050 Ritter Road, Mechanicsburg, PA 17055. Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2021-05, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. Copyright 2021. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and/or other professional advisors concerning specific matters before making any decisions. We disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.
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CHAIR OF THE BOARD’S MESSAGE
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CLAIRE-IFICATION
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COVERAGE CORNER
6
NEWS & NOTES
14
PREVENTING E&O
18
PICS & POSTS
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WELCOME NEW MEMBERS
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UPCOMING LIVE WEBINARS
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CHAIR OF THE BOARD’S MESSAGE
A FRESH START Springtime is always energizing and revitalizing. It’s rebirth and renewal, and this year even more so! We’re emerging from a long winter and, of course, an even longer societal disruption due to the pandemic. But now it’s May! The weather is warming, the golf courses are greening, kids' sports are ramping up, and our everyday lives are regaining a familiar rhythm. In many ways, this spring feels like a fresh start. Let’s take advantage of this energy. For some of us, this may mean improving our agency operations or building a “dream team.” (See page 8 for tips from IA&B’s HR consultant on hiring and retaining top talent.) For others, it may mean helping our communities rebound after COVID-19 or finding ways to support our industry. I am grateful that my friend Mark Monroe talks about the importance of getting involved with IA&B on page 10. As an industry, we have persevered over the past 14 months. Most of our fellow agents have survived, unlike many, many businesses. I have talked with several agents who appreciate this industry and its staying power throughout these most difficult times. But now it’s time to focus on the future and harness the energy of this moment, to help our insureds and their businesses come back. A successful tomorrow depends upon our actions today. Let’s find ways to partner, to encourage and support them, and to be properly staffed to make it happen. Respectfully,
INSURANCE AGENTS & BROKERS 5050 Ritter Road | Mechanicsburg, PA 17055 191 Main Street | Annapolis, MD 21401 800-998-9644 | IABforME.com
IA&B BOARD OF DIRECTORS OFFICERS Craig S. Mader, Chair Crofton, MD Richard M. Rankin, CIC, Vice Chair Lancaster, PA
MEMBERS Gregory H. Bennett
Bel Air, MD
Sarah M. Brown, CIC, CRM, AFIS Shrewsbury, PA E. Stephen Burnett, CIC, ARM Wilmington, DE N. Lee Dotson, CIC, AAI
Wilmington, DE
Andrew Enders, Esq.
Harrisburg, PA
Len Gieseler, LUTCF
Pottstown, PA
G. Greg Gunn, CIC
Lemoyne, PA
Bryan C. Hanes, JD
Hagerstown, MD
Jason R. Hess
Coraopolis, PA
Lisa A. Leach Goth, CIC
New Bethlehem, PA
Christopher J. Miller, CIC
Jonestown, PA
Michael A. Papa, CIC, MBA Hunt Valley, MD William H. Purdy
Sunbury, PA
Jason Rodriguez
Wilmington, DE
D. Bradley Rosenkilde Jr.
Hunt Valley, MD
Tara S. Silfies, CPCU
Bethlehem, PA
Robert L. Smyrl Jr., CIC
Hatfield, PA
J. Marshall Wolff, CIC, CPCU Easton, PA
NATIONAL DIRECTORS Craig S. Mader Chair of the Board
Michael P. Ertel Sr. (PIA) Columbia, MD G. Greg Gunn, CIC (IIABA) Lemoyne, PA Diane Hornung Hanby (IIABA) Wilmington, DE
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MAY 2021
CLAIRE-IFICATION
CLAIRE-IFICATION IA&B Vice President - Advocacy Claire Pantaloni, CIC, CISR Are you a member with a question? Contact Claire to find the answer at 800-998-9644, ext. 604 or ClaireP@IABforME.com.
QUESTION:
Can a mortgage lender require my insured to cover the home for the full loan value rather than the replacement cost?
ANSWER: No, but it’s not always that simple, especially based on recent developments. In all cases, the answer depends on the state where the practice occurs and the type of financial institution and/or loan. First of all, our three states now all have language prohibiting the practice of requiring more than the replacement value of the buildings. It is important to remember that this prohibition applies to statechartered banks. DELAWARE The Delaware Code specifically addresses the amount of property insurance in connection with the loan at Title 25, section 2119 Insurance requirements for mortgages, and at Title 5, section 2418 Prohibited acts and practices (for mortgage loan originators). Under §2119, the lender may not require more than “the value placed on the improvements,” which by definition excludes the value of the land. §2418 states that “it is a violation to (13) Cause or require a borrower to obtain property insurance coverage in an amount that exceeds the replacement cost of the improvements as established by the property insurer.”
MARYLAND
PENNSYLVANIA
The Maryland Code is replete with protection for consumers, prohibiting state-chartered lenders from requiring a borrower to obtain coverage beyond the replacement cost of the real property. Members who are confronted with this situation can refer the lender to Commercial Law/ Credit regulations, section 12124. It states: “(2) A lender may not require a borrower, as a condition to receiving or maintaining a loan secured by a first mortgage or first deed of trust, to provide or purchase property insurance coverage against risks to any improvements on any real property in an amount exceeding the replacement cost of the improvements on the real property.” Note that subparagraph (3) provides the same language for flood insurance. In addition, substantially similar language is also available at § 12-410 for secondary mortgages, § 12-312 (e) for consumer loans, § 12-909 (e) for revolving-credit transactions, and at § 12-1007 (f) for closed-end-credit transactions.
IA&B spearheaded the Mortgage Property Insurance Coverage Act (Act 51 of 2008), which applies to owneroccupied residential property. The law prohibits lenders from requiring a borrower to obtain property insurance coverage which exceeds the replacement value of buildings and structures situated on the land. The borrower may not be required to insure the value of the land. FANNIE MAE / FREDDIE MAC Fannie Mae and Freddie Mac purchase mortgages and convert them for resale to investors. Both institutions have specific guidelines that also prohibit the practice of asking more than the replacement cost. If you run into an issue with these institutions, refer the letter to the Fannie Mae Selling Guide - Single Family (Part B, Chapter B7-3, Hazard and Flood Insurance) or the Freddie Mac Single Family Seller/Servicer Guide (Series 4000, Chapter 4703). Continued on page 17
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PERSONAL LIABILITY PARTY: CONCERNS WITH USING A VENUE By Kevin C. Amrhein, CIC If you spent much of last spring getting sloshed on Zoom, you weren’t alone. Just in case you forgot, here is a recap of what was happening at the time: nothing. No wedding receptions, no birthday parties, no social gatherings. This spring, in many areas, restrictions on gatherings remain and likely will for the foreseeable future. In other areas, relaxed restrictions mean businesses which rely on such are welcoming guests with open arms and broad hold harmless agreements. If an insured wants to book a venue for a reception,
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birthday/graduation party, or any gathering, what should he/she expect from the ISO homeowners (HO) policy?
THE BIRTHDAY PARTY EXAMPLE The plans we made last April for our daughter’s birthday party were abruptly cancelled by the venue – the downtown Science Center which offers “‘Everything is Awesome’ Lego Parties” for kids. (She and her friends were devastated when “COVID the Clown” pooped the party.) I had signed the paperwork, including a contract in which I agreed to hold MAY 2021
the venue harmless for claims of liability arising from the party. Should a guest blame the venue for a slip down the stairs, scalding a lip on piping-hot pizza, or taking a tossed Lego block to the eyeball, it was on me. Should the venue be blamed when a partygoer damages another guest’s property – like when the kids break the photographer’s equipment or the DJ’s lighting display – it was on me. I further accepted responsibility for any damage caused to the venue’s property. Had this party actually happened, I’d have been on the hook for the actions of two-dozen amped-
COVERAGE CORNER up kids and their sleep-deprived, over-caffeinated parents. Neat.
THE ISO HO POLICY In summary, Section II – Liability Coverages responds to claims of BI or PD for which an “insured” is legally responsible. While the applicability of liability assumed by contract is an interesting legal discussion, for the purpose of this article, let’s assume the hold harmless agreement is valid. After review of the Insuring Agreement, the next step is to search for any applicable exclusion. For many agents, one that may jump to mind is F.1.b. – sometimes referred to as contractual liability. Here is the wording: Coverage E (Personal Liability) does not apply to: 1. Liability… Under any contract or agreement entered into by an “insured”. However, this exclusion does not apply to written contracts: (1) That directly relate to the ownership, maintenance or use of an “insured location”; or (2) Where the liability of others is assumed by you prior to an “occurrence”; unless excluded in a. above or elsewhere in this policy; Provided the claim is not excluded elsewhere in the policy, the exceptions to this exclusion are significant. In my example, the written hold harmless agreement directly relates to the use of an “insured location” (exception 1). If that weren’t the case, exception 2 would apply as my assumption of liability was prior to an “occurrence.” Should I get a bill from the venue for damage to its property caused by a
guest, finding coverage may be more challenging. The reason is that the broadening language above is only applicable if the claim is not excluded elsewhere in the policy. Here is an example of problematic wording found in Exclusion F.3.: “Property damage” to property rented to, occupied or used by or in the care of an “insured”. This exclusion does not apply to “property damage” caused by fire, smoke or explosion; Should I be liable for damage caused by something other than fire, smoke, or explosion, there is a limited giveback of up to $1,000 found in Section II – Additional Coverages, C. Damage To Property Of Others. Some carriers may be amenable to increasing this amount by endorsement.
Kevin C Amrhein, CIC, is IA&B‘s education consultant. He works with our CISR and CIC programs, as well as our special topic seminars and live webinars. Catch him at one of our upcoming professional training offerings: IABforME.com
ONE HOUR WEBINARS Earn CE easily by attending 1-hour webinars. Member price: only $25.
HOUR W/ NICOLE: PERSONAL UMBRELLA ISSUES & ANSWERS
TAKEAWAYS FOR THE AGENT
MAY 12
▲ Prepare for inquiries from insureds regarding coverage applicable to gatherings.
2 - 3 PM
▲ Unless obligated to do so (example: vendor requirement), many insureds will not consider insurance when planning a gathering. Agents should be clear in communications – newsletter, website, social media, etc. – of the importance of considering insurance as part of the planning process.
CE
That’s all for now. Until the next round … cheers!
1 CREDIT
HOUR W/ COREY: VALUATION OF CUSTOM CARS & TRICKED-OUT TRUCKS MAY 19 2 - 3 PM
CE
1 CREDIT
HOUR W/ CATHY: INSURANCE ISSUES FOR COMMERCIAL TENANT MAY 26
▲ Clearly understand the HO policy’s position on liability assumed by contract. ▲ Review the Personal Umbrella as it may differ from the underlying HO policy.
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2 - 3 PM
CE
1 CREDIT
Register today. IABforME.com 800-998-9644, option 1
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NEWS & NOTES
2021 IA&B YOUNG AGENT AWARD
OCTOBER 2020
RISING STARNGSAGENT MEET THE IA&B YOU AWARD WINNERS
Exclusive Member
Magazine
ONLINE EXPOSURES
ary Agent featuring October 2020 Prim d recipients. the inaugural awar
IA&B will recognize three rising stars in the independent insurance community in Pennsylvania, Maryland, and Delaware.
Award criteria includes:
Recipients receive:
▲ 39 years old or younger
▲ Featured on the October 2021 IA&B Primary Agent magazine cover
▲ Made community contributions through volunteering or service
▲ Featured in a video on the IA&B website and social media ▲ Recognized at 2021 IA&B Futures Program events ▲ And more!
PA INSURANCE DEPT. TO END COVID-19 LENIENCY The Pennsylvania Insurance Department (PID) will discontinue continuing education and licensing renewal flexibility prompted by the pandemic. Published on Feb. 27, 2021, Notice 2021-02 rescinds the guidelines of Notice 2020-06, which was released in April 2020. Notice 2020-06 temporarily waived CE requirements and temporarily extended the licensing renewal deadline for those impacted by “extenuating circumstances related to COVID-19.”
Notice 2021-02 announces the suspension of these extensions as of May 14, 2021. By this date, the Department will “require all licensees who were granted, benefitted from, or affected by temporary continuation of licenses renewal deadlines, including continuing education requirements and licensing fee, to come into compliance.”
▲ Employed by an IA&B Member Agency for one year or more
▲ Example of becoming an up-and coming leader in the field ▲ Participated in IA&B events, education, or other happenings The application is coming soon! Watch IA&B communications in the weeks ahead for more information.
PA LICENSING STUDY COURSE NOW LIVE WEBINAR Increase your chance of passing the Pennsylvania Property & Casualty Licensing exam on the first try. Insurance Agents & Brokers (IA&B) will offer the popular licensing study course in a live-webinar format on May 25-27. Conducted over Zoom, this live webinar mirrors IA&B’s popular in-person licensing study course, to include: ▲ Newly designed study materials ▲ Complete mentor program ▲ Simplified study guide ▲ 24 PLE credits Register at IABforME.com or by calling 800-998-9644, option 1.
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MAY 2021
MIA ADDRESSES PRODUCERS’ ROLE AMID MAIL DELAYS
LICENSING PREP SCHOLARSHIP RECIPIENTS
IA&B TESTIFIES BEFORE DELAWARE LAWMAKERS
The Maryland Insurance Administration (MIA) expects producers to be aware of U.S. Postal Service delays and assist customers. However, producers should consider the best way to meet these expectations without extending their duty of care.
We’re pleased to announce that the following aspiring insurance agents received IA&B licensing exam prep scholarships this spring. These scholarships are valid on our self-study guides for the Pennsylvania, Maryland, and Delaware licensing exams, as well as our licensing study live webinar for the Pennsylvania licensing exam.
IA&B this spring testified in Dover on two pieces of insurance legislation – one which would suspend certain uninsured driving fines and another which would address “storm chasers.”
The MIA recently issued Bulletin 21-08, which revisits the mail delays caused by the pandemic. These delays have plagued payment of insurance premiums mailed by policyholders, leading to unwarranted cancellations for nonpayment of premium. This bulletin follows the Feb. 16 MIA Consumer Advisory that encouraged insurance consumers to pay attention to their due dates and consider alternatives to mailing payments. Bulletin 2108 focuses its attention on how insurers and producers can relay the message to policyholders. Producers are reminded that they must navigate their E&O exposure, too. The practice of calling customers who are about to be cancelled for non-pay extends an agency’s duty of care that E&O carriers caution against, based on established case law. In fact, discontinuing the practice requires communication to the entire customer base, preferably with certified letters.
IA&B also offers CIC, CISR, and live CE webinar scholarships for member agencies and individuals. Check back later this spring to apply for the next round. Since the 2019 launch of this program, we have awarded over $20,000 in scholarships. The effort is part of our broader strategy to support the future of the independent agency system.
ASPIRING AGENTS Rebekah Dries The Coup Agency Milton, PA Mark Ford Trinity Risk Services LLC Pittsburgh, PA Mark Giovanelli Ziemba Insurance Dallas, PA Erin Grantland Insurance Associates Inc. Newark, DE
In the Delaware State Senate Transportation Committee, IA&B opposed SB 40, which would permit the court to suspend all or part of the fine for uninsured driving if the defendant provides evidence that they secured insurance between the date of the fine and the date of the sentencing. IA&B’s government affairs team expressed concern that the unintended consequence of this bill will be to increase incidences of uninsured driving, as some drivers surely will risk waiting to secure coverage until they are charged. In the Senate Banking, Business & Insurance Committee, IA&B spoke in support of SB 80. The legislation is a Department of Insurance (DOI) priority, which addresses the issue of “storm chasers” by authorizing a property insurance carrier to limit a policy’s assignability only to those persons or entities which have the legal authority to represent an insured. Stay tuned to Agent Headlines for updates on these and other issues as the legislative activity heats up this spring.
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Q&A with
MARK MONROE Mark Monroe is a producer with Griffith Insurance LLP, a full-service independent insurance agency in West Chester, PA. He serves on the IA&B of Pennsylvania Government Relations Committee and formerly served as Chairman of the IA&B of Pennsylvania Board of Directors. Q. How did you land in the insurance industry? And what prompted you to go independent after beginning your career as a captive agent? A. Like many of my peers, a family connection. My dad had a 30+ year career as a captive insurance agent. (I’ll give you a hint about what insurance company he worked for: He spent time in an insurance sales office located in a once large, national department store.) So I guess you could say that I grew up in the insurance business. I eventually joined that same captive insurance company as an employee agent and ran my own location. About 10 years into my career, they made the corporate decision to jettison employee agents. At that point I realized I needed to make a change. I loved the industry and the business of insurance, but I knew that going forward I couldn’t tie myself down and be subjected to the corporate decisions of any one company. In other words I saw the light in becoming independent. Q. Your agency has a substantial book of personal lines business. How has the market changed over the years, and what do you anticipate moving forward? A. I would say that technology has definitely leveled the playing field for independent agents. In my experience, the captives and direct writers had an advantage in personal lines up until the early ‘90s. Since the mid to late
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‘90s, that advantage moved to independent agents. We have the ability to quote, bind, and issue any insurance company we represent while simultaneously being the best fit (coverage and price) for our clients – all in a matter of minutes. Going forward, personal lines will continue to see new entrants come to market, be it direct writers, auto makers and smart home builders, and others, especially in light of the capital that is flowing into the insurance and fintech space. Direct-to-consumer insurance companies named after a popular drink or zoo animal seem to be the recent trend and appear to be targeting first-time / new insurance buyers. As independent agents, we need to insulate our future pipelines by targeting and reaching out to our current clients and their next generation. Independent agents have been doing this for over 225 years. (The first recognized independent agent was John Maynard Davis of South Carolina in 1795!) No computer screen, nor a stranger on an 800 number, can ever compete with independent agents on knowledge, consultative advice, and concern for clients. Q. What’s the best professional advice you’ve ever received? A. “Do what you love, and you will never work a day in your life.” I heard that more than once. More importantly,
MAY 2021
ON THE COVER “Be a sponge, and absorb everything you can.” That’s probably the most appropriate because in business you are constantly learning and, when necessary, adapting. From an insurance-sales point of view, I was told early in my career that the easiest way to build a personal lines book was to start by going for the “largest door” – referring to the garage door. In other words, go after the car insurance and cross-sell from there. Q. Thank you for your long-time support of IA&B’s government affairs work. As a member of our IA&B of Pennsylvania Government Relations Committee and newly formed PAC Special Committee, what drives your commitment to political advocacy? And what would you say to other IA&B members to encourage their involvement? A. Yes, absolutely and happy to serve. I began my involvement on a whim, purely out of curiosity, by attending the Big “I” National Legislative Conference in Washington, D.C. maybe eight years ago. At the time I didn’t know any agents or IA&B staff who were attending and didn’t know anything about the event, so it was definitely a learning experience for me. It was great to see first-hand how our agents’ associations are involved, helping us on the front lines, and to get to know what great people we have on the IA&B staff. I came away from the conference energized and interested to get involved. That led to me attending Member Agent Panel meetings and additional National Legislative Conferences, and then to serving on the IA&B Board.
I’ve been swimming competitively since I was 7 years old. I started out by participating on a summer swim team, the Drexel Swim Club. (I still hold a team record for an event or two!) Then in my teens, I swam at the local YMCA, then more competitively at the Suburban Swim Club and the (infamous) Foxcatcher Swim Club. I continued swimming at Penncrest High School and the University of Delaware and then found my way into U.S. Masters Swimming. Sadly, the pandemic forced the cancellation of all indoor swim meets in 2020 and so far in 2021, so the last time I swam competitively was back in 2019 for a one-mile ocean swim in New Jersey. I’m looking forward to getting things back to normal! Q. As we interview you, COVID-19 vaccines are rolling out, and everyone is dreaming of post-pandemic life. What are you looking forward to the most? A. First is getting back to normal with family gatherings – holidays and birthdays. Second is participating in a Masters Swim Meet again!
Philadelphia-area fallen Iraq War Veteran Travis Manion asked, “If not me, then who?” Those words are carried on today by his foundation, and the mantra is fitting for life in general and for getting involved with our industry and IA&B. To those members on the sidelines, I would say, “Get involved. It’s your career and your industry.” Q. We understand that you’re an avid swimmer. Do you still compete? Tell us about it! A. Sure, the pool is fresh in my memory as I was in at 6 AM today before coming to the office. Typically I swim four mornings per week for one hour, and I complete 2,000 to 2,500 yards (80 to 100 lengths of pool) per workout. Mark and his daughter, Taylor, at a 2019 ocean swim competition in New Jersey.
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Top Tips for
Finding &
Keeping Talent By Karen DiGioia
In my role as a Human Resources consultant, I work with lots of clients across a wide range of industries. In 2020, the vast majority of conversations centered around one topic: COVID-19. Recently, however, I’m seeing a shift. Can you guess the most common topic in 2021 (no fair peaking at the next sentence)? It’s the growing challenges associated with finding and keeping talent. 10
MAY 2021
FEATURE While the challenges associated with COVID are not fully behind us, employers seem to have “all (or at least most) things COVID” sorted out. Things are moving in the right direction … even though we’re not yet back to business-as-usual. We’ve gotten used to remote work. We know what to do if someone gets sick (step 1 – stay home!). We’ve worked out most of the kinks, and for many, business is picking up. Now, if we could just find (and keep) talent, we’d be set.
Now that you have the job, ideal candidate, and interview questions defined, you’re ready to begin your search. In addition to using job search websites, make sure to also list it on your website, use social media and, most importantly, ask your employees, your associates, and even your customers. More positions are filled through networking than any other way, so use your personal and professional networks to cast the broadest net possible.
TALENT ACQUISITION
Once you have your candidates, use your job description and candidate profile to determine those that meet the qualifications. Be certain to reach out to those candidates who won’t be interviewed. A short note or email is all that is needed to let them know that you appreciate their interest, but they don’t meet the requirements at this time (do the same thing later with those who were interviewed but not selected).
Never (a strong word, I know) underestimate the importance of talent acquisition. On a personal side, many of us try to remind ourselves (at least periodically) that “we are what we eat.” For organizations, the adage should be “you are who you hire.” Resolve to invest the time and money it takes to find and hire the talent that you need to move the agency forward and achieve strategic and operational objectives. With the right people in the right roles, anything is possible!
Now it’s time for the interview. Use the interview questions that you developed earlier to ensure that you are comparing your candidates on an equal field. Also, make sure that you treat your candidates like you treat your customers. Gone are the days where an employer is “doing candidates a favor” by considering them for a job. When selling your home, you fix things up to attract potential buyers. In the same way, you want to put your best foot forward when interacting with candidates.
But where do you start? You might be thinking, “I post the position.” While that’s one of the first steps, it’s best to first take the time to clearly define the job and understand your needs. If you don’t already have a job description in place, write one. Then write a candidate profile. In the same way that the job description describes the job, a candidate profile describes the ideal candidate including experience, traits, qualities, soft and hard skills, and abilities. Word of warning: Make sure that your profile doesn’t include demographic information such as age, race, gender, etc. … or anything else that isn’t truly related to a candidate’s ability to do the job.
Once the interviews are complete, compare your interview notes and determine which candidate best meets the requirements for the job. Now you’re ready to make the offer.
I’ll start with the bad news: There are no easy answers. There are, however, a number of ways that you can better position your agency to attract, motivate, and retain the talent that you need. Ways that will improve your agency through its most important asset – your employees.
Next, use the job description and candidate profile to develop a list of interview questions that will be used for each candidate to explore their experience and traits to determine who is best suited for your position when that time comes.
IA&B JOB BOARD Post your open positions on the IA&B job board to find qualified, industry-specific candidates. IA&B members receive a significant discount: a 60-day job posting for only $50. jobs.IABforME.com
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COMPENSATION
Remember, it’s a candidate’s market. Your top candidate may have several offers from which to pick. Think of the interview process as a courtship (does anyone use that word anymore?) and now you’re ready to “pop the question.” While there’s no formula for the perfect job offer, here’s a list of some best practices:
Ensure that your pay programs are competitive with the market, administered in a manner that is fair and equitable, and achieving desired results. While pay and benefits are rarely the primary reason employees will choose to work for your agency (or not), it’s important that your programs enable you to attract, motivate, and retain the talent you need.
▲ Move as quickly as you can – good candidates don’t stay on the market for long ▲ Make the offer over the phone (or in person) – don’t do it by letter or email ▲ Be enthusiastic, positive, and honest ▲ Make sure your offer is competitive ▲ Try to get an acceptance at the time of the offer but understand if your candidate needs time to think about it ▲ Follow up in writing If all goes as hoped, congratulations are in order! You’ve found your candidate, made the offer and the candidate has accepted. Now what? Is your work done? Of course not! Your focus now with your new hire and your existing employees is on motivating and retaining a group of engaged and productive employees. Let’s talk briefly about many of the ways this should be done.
ONBOARDING Once you’ve found the right talent, make the investment to properly onboard your new employees and integrate them into your team. It can be especially challenging to integrate and support new employees if some or all of your team is working remotely, but to ensure that your employees are fully engaged and maximize employee effectiveness and retention, this is critical.
PERFORMANCE MANAGEMENT Supplement your once-a-year performance appraisal with a continuous performance-management process, providing employees with regular feedback and ensuring that they have a clear understanding of priorities and expectations. Employees who know what is expected and how they are matching up to expectations are motivated, successful, and engaged. They also have higher levels of job satisfaction and higher retention rates.
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TRAINING All too frequently we take our best tactical employees, promote them to supervisory or management roles, but don’t provide them with the appropriate tools – including management/supervisory skills training. We are then surprised when they don’t know how to manage. The impact of this on our employees and our agency is considerable. Working under a weak manager is like sailing without a rudder; in the absence of strong management, your employees will have no direction. Your best employees will leave, and your weakest employees will stay. While management skills do not come naturally for most, they can be taught. An investment in training is an investment in the agency.
COMMUNICATION Communication is such a simple, complicated, frustrating, and crucial topic. If we want people to know what’s going on, know what we expect from them, and know how they are doing, we need to tell them. (Communication really should have been first, but if I move it now, I’ll miss the editorial deadline!) Communication can be easy, like ensuring that you have an organizational calendar in place that includes key dates for everyone – holidays, pay dates, open enrollment, and performance management dates. Or communication can be more complicated, like telling an employee that their performance isn’t meeting expectations. Don’t lose sight of the fact that communication is a two-way street! Listen to employees. Give them the opportunity to be heard. Gather feedback and, if possible, consider finding a way, periodically, to do it anonymously. You may think that you have a pulse on what your
MAY 2021
FEATURE employees think and feel but you could only be hearing the things they are comfortable saying directly. Be willing to listen to what else they may have to say.
EQUITABLE TREATMENT The word “equity” has gotten a lot of press recently. Have you stopped to consider what it really means? The dictionary definition of equitable is “fair and impartial.” Look at your agency and the decisions that are made. Look at hiring, promotions, compensation, and overall treatment of employees. Are you “fair and impartial” in all things? Strive to uncover those places where you are not and to fix inequities.
PRIORITIZE HEALTH AND WELLNESS
option, find themselves at a significant disadvantage when trying to attract (and retain) employees. How many times have we heard it? 2020 was a challenging year, and 2021 continues to provide us with challenges of its own. The good news is you don’t have to go it alone. As part of your IA&B membership, expert advice is just a phone call or email away. Have an employee-related challenge that you’re not sure how to handle? I can be reached at 610-779-3870 or karen@mostellerhr.com. Karen H. DiGioia provided this article on behalf of Mosteller & Associates, IA&B’s contracted human resources consulting firm.
Prior to take off (if you can remember flying), the flight attendants always review safety instructions. When they describe what to do in the event of a loss in cabin pressure, they remind us to put on our own oxygen masks before trying to help others around us. The premise being, if we lose consciousness while trying to help someone else first, we won’t be helpful to anyone. In some ways 2020 and 2021 so far could be viewed as a global loss of cabin pressure. Make sure that you and your employees make self-care a priority before trying to help others. During “challenging times” (there, I said it), it can be difficult to take a “time out” for ourselves but, if we don’t, we won’t be able to help others.
BE FLEXIBLE While 2020 brought us many challenges, we also learned some things, including new ways to get work done. One of those “new ways” for many organizations was remote work. While some organizations were already equipped for this, many were not. As the world opens up again, I urge all employers to hang onto remote work to whatever degree they can. While some organizations have been very public about their intention to never (still a strong word) go back to “in person” work, for most organizations, at the very least, some level of hybrid work that combines in person with remote work is here to stay. One of the most common interview questions from candidates today is, “Is remote work an option here?” Employers who don’t embrace at least some degree of remote work, when it’s a viable
NEED A STAFFING SOLUTION? Work at Home Vintage Experts (WAHVE) matches retired insurance professionals who have remote-work experience to meet your specific staffing needs. IA&B members receive a 50% discount on the one-time setup fee.
Learn more or get started by contacting: Bill Hunt at WAHVE 646-807-4372, ext. 3757 bill.hunt@wahve.com
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HOW TO AVOID VICTIMIZATION BY CYBER EXTORTIONISTS By Thomas Casella, JD, MBA, SCLA
Ransomware1 attacks, also known as cyber extortion, are on the rise. As these attacks increase in frequency, ransom demands are increasing as well. More particularly, such demands are estimated to have nearly doubled in 2020 over the prior year2; the average ransomware demand is $233,8173. If your computer system is compromised by ransomware, it can cause delays in conducting your business, a loss in profits, increased expense in
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responding to the breach, and may impact your business’s good will if personally identifiable information (“PII”) is infiltrated by the hackers. Although ransomware attacks are increasing, there are steps you can take to protect your computer system from the attempts of hackers to encrypt, compromise, and/or steal your data, as well as help you rebound quickly in the event your computer system is encrypted by hackers: MAY 2021
EDUCATE STAFF ON MALWARE AND SYSTEM VULNERABILITY. You and your staff need to be aware of what files and links you are accessing on your computer system. One way for hackers to gain access to your computer system is through phishing, i.e., social engineering where the hacker sends a fraudulent email that appears to be a legitimate business email with links or attached files that, if accessed,
PREVENTING E&O
release the ransomware on your computer system. Educating users on the types of social engineering scams being used and the importance of not clicking on links or opening files from untrusted sources are the first line of defense against a ransomware attack.
ENSURE THAT YOUR SYSTEM SOFTWARE, INCLUDING ANTIVIRUS SOFTWARE, IS UPDATED REGULARLY. Ransomware can be quite sophisticated and may take advantage of weaknesses in your computer system’s architecture. Ensuring that your operating system and programs are regularly updated with security patches can increase the efficacy of your computer system’s built-in security. Likewise, having antivirus software is important for early detection; however, if it is not regularly updated, it will not be as effective at locating and isolating potential malware.
IF AVAILABLE, EMPLOY ENDPOINT DETECTION AND RESPONSE (EDR). An endpoint is any point in your computer system or network where communication occurs, i.e., entry and exit of data. EDR is a complementary component to antivirus software and offers a proactive tool for locating malware before it can negatively impact your computer system. However, EDR is not included in all antivirus platforms and may
require additional cost per user. Therefore, you must consider the cost and benefit of such an application. Depending on the size and volume of your agency, it may be a worthwhile investment in your business operation.
UTILIZE AN AUTOMATED COMPUTER SYSTEM BACKUP. It is important that you backup your computer system daily. Why? Once your computer system is encrypted by ransomware, you are likely not going to be able to access that data without a key code from the hacker, which may be quite expensive and not guaranteed to get all of your data back. Moreover, even if the hacker provides a key that unlocks your data (after paying a hefty ransom), there is no guarantee that there is not more malware on your computer system that will activate at a later date. However, if your computer system is backedup daily, you can simply wipe your system of the encrypted data and ransomware, and restore your data from the most recent backup (that predates the infection). Many cyber risk policies will cover that restoration cost up to the applicable sublimit for ransomware.
CREATE AN INCIDENT RESPONSE PLAN. Having an incident response plan will provide your agency with a framework on how to respond to a cyber threat, such as a ransomware attack. It should include information
AGENCY CYBER COVERAGE Secure cyber coverage for your agency. With ransomware attacks on the rise, a solid privacy and data breach policy is critical. IA&B can help your agency add another layer of protection with our cyber insurance offering. Contact IA&B to learn more. 800-988-9644, option 3
on available resources, such as information regarding your Cyber Risk coverage, third-party vendors that are approved for servicing your computer system, and actions to take to avoid further damage from cyber threats. Protecting your proprietary information and the PII of your customers is a necessary component of a trusted and successful business. Avoid being a victim to cyber extortionists by being proactive in the use and management of your computer system.
Continued on page 16
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PREVENTING E&O Continued from page 15 1
A type of malware designed to encrypt a user’s data and lock the user out of their system. Some types of ransomware allow for the exfiltration of data, while others merely restrict access to the data.
2
Cyber Security Trends in 2021, Firch, Jason, MBA, published December 31, 2020
3
This Year In Ransomware Payouts (2020 Edition), Soare, Bianca, published December 18, 2020
Thomas Casella, JD, MBA, SCLA, senior risk management specialist with Utica National Insurance Group, penned this article. © 2020 Utica Mutual Insurance Company.
This information is provided solely as an insurance risk management tool. Utica Mutual Insurance Company and the other member insurance companies of the Utica National Insurance Group (“Utica National”) are not providing legal advice, medical advice, or any other professional services. Utica National shall have no liability to any person or entity with respect to any loss or damages alleged to have been caused, directly or indirectly, by the use of the information provided. You are encouraged to consult an attorney or other professional for advice on these issues. © 2021 Utica Mutual Insurance Company
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s
Recognizing that the typical insurance needs of homeowners have changed over the years, our Homeowners products have been designed for all kinds of circumstances. We cover: Single-family homes & multi-family dwellings Condominium units Renters and lessors/landlords Home-sharing services Browse all of our products at www.guard.com. Our Homeowners Insurance is not available in all states. Please refer to www.guard.com/states for state availability.
APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY AmGUARD • EastGUARD • NorGUARD • WestGUARD
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MAY 2021
CLAIRE-IFICATION Continued from page 3 FLOOD POLICIES If the situation involves a flood policy, the Fannie Mae and Freddie Mac guides also include information on the amount of flood insurance that can be mandated. The main stumbling block remains national banks (it will have the word “national” in its name or “N.A.” after its name). National banks are regulated by the Office of the Comptroller of the Currency (OCC). We are not aware of any specific guidance given by the OCC to lenders on this issue. Producers can still encourage individuals to file a complaint with the OCC, but there is no legal or regulatory leverage to speak of. This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.
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PICS & POSTS
PICS & POSTS
Facebook.com/IABforME LinkedIn.com/company/IA_and_B Twitter.com/IA_and_B YouTube.com
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MAY 2021
IA&B Members: Shopping E&O? ▲ We have the plans that agencies need. For personalized service, CONTACT DAVID WERTZ, CPIA 800-998-9644, ext. 506 DavidW@IABforME.com IABforME.com
Thank You Thanks to these partners for supporting the independent agent network.
PLATINUM PARTNERS Acuity Erie Insurance The Main Street America Group
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• You will be the agency of record on all policies • No initiation or monthly fees • Low to no volume commitments • Standard commission rates • 100% ownership of expirations • A broad mix of standard and niche markets that are state specific
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Contact Tim Wonder, VP - Membership TimW@IABforME.com • 800-998-9644, ext. 351
BECOME A PARTNER TODAY Interested in becoming a partner? Reach out today. Tim Wonder IA&B VP-Membership 800-998-9644, ext. 351 TimW@IABforME.com 19
CYBER SECURITY VULNERABILITY ASSESSMENT
WELCOME NEW MEMBERS
PROTECT YOUR AGENCY FROM HACKERS
Old Bay Insurance Agency Inc Annapolis, MD
We partnered with Radiant to offer your agency a lowcost, fee-based cyber security vulnerability assessment without disrupting your daily operations.
Daubert Shannon & Associates LLC Bethlehem, DE SteelKey Insurance Pittsburgh, PA
To learn more, contact: Paul Kapadia 732-423-9991 | PaulK@IABforME.com IABforME.com
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NEW PARTNER IA&B works on your behalf to ensure that state legislators and regulators understand the issues affecting agents.
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Have a question about your member benefits?
And your financial support amplifies your message.
Contact: Tim Wonder VP-Membership 800-998-9644, ext. 351 TimW@IABforME.com
Please consider contributing. More information at IABforME.com 20
MAY 2021
T R A I N I N G & E D U C AT I O N |
EDUCATION UPDATE All IA&B classes are online. We will continue to monitor COVID-19 conditions and resume classroom options when appropriate. For all 2021 classes, go to IABforME.com
PRIMARY AGENT Editor: Karen Robison KarenR@IABforME.com 800-998-9644, ext. 606 Contributing editors: Jennifer Ross Megan Fioretta Melissa Telesha Sales Account Executive: Laura Gaenzle laura.gaenzle@theygsgroup.com 717-430-2351
UPCOMING WEBINARS M AY 2 0 2 1 Connect with Other Agents & Get CE Credits Online Register today! 800-998-9644, option 1 IABforME.com DATE
TOPIC
TIME
May 4 - 5
James K. Ruble Graduate Seminar
8 AM - 5 PM
May 4
Commercial Property - Direct vs. Indirect Damage
1 - 4 PM
May 5
CISR Commercial Casualty I
8 AM - 4 PM
May 11
Small or Hobby Farm: Identifying and Insuring Risk
9AM - NOON
May 11
Financially Surviving Retirement
1 - 4 PM
May 12
CISR Life & Health Essentials
8 AM - 4 PM
May 12
Personal Umbrella Issues & Answers
2 - 3 PM
May 13
CISR Commercial Property
8 AM - 4 PM
May 13
Personal Lines Clients and Their New Normal
1 - 4 PM
May 18 - 19 CIC Insurance Company Operations
8 AM - 5 PM
May 18
CPIA Position for Success
8:30 AM - 4:30 PM
May 18
Ethics: Essentials for the Insurance Producer
1 - 4 PM
May 19
CPIA Implement for Success
8:30 AM - 4:30 PM
May 19
CISR Commercial Casualty II
8:30 AM - 4:30 PM
May 19
Valuation Issues - Custom Cars & Tricked Out Trucks
2 - 3 PM
May 20
CPIA Sustain Success
8:30 AM - 4:30 PM
May 20
CISR Agency Operations
8 AM - 3:45 PM
May 20
Insurance Solutions for the Long - Term
9 AM - NOON
May 20
Home & Auto Exposures Your Insured Doesn’t Share
1 - 4 PM
May 25 - 27 PA Property & Casualty Licensing Study Course
8 AM - 5 PM
May 25
Agent’s E&O: Documentation, Social Media, Cyber, Etc. 9 AM - NOON
May 25
Understanding & Insuring Emerging Risks
1 - 4 PM
May 26
CISR Personal Residential
8 AM - 3:45 PM
May 26
Insurance Issues for the Commercial Tenant
2 - 3 PM
May 27
Additional Insureds and Certificates
9 AM - NOON
May 27
Contracts Agents Should Read
1 - 4 PM
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